Overview

• Finance Minister François-Philippe Champagne has directed all cabinet ministers to cut operating budgets by 7.5% in 2026, 10% in 2027 and 15% in 2028.
• The Department of National Defence must identify savings despite a $9.3 billion top-up to meet NATO allies’ pledge to reach 5% of GDP by 2035.
• Treasury Board President Shafqat Ali launched a 60-day red tape review requiring ministers to propose cuts to outdated or duplicative regulations.
• The Public Service Alliance of Canada warned that steep program cuts could trigger widespread job losses and longer delays for public services.
• The Parliamentary Budget Officer cautioned that Ottawa’s deficit could exceed the $62 billion projection without clear offsetting reductions.